Distinguishing Experience: Fulfilling vs. Shaping Demand PPT

This PPT slide, part of the 22-slide BCG Experience Curve PowerPoint presentation, delineates 2 distinct types of experience: fulfilling demand and shaping demand. It emphasizes that both experiences are essential for sustained growth, though they are acquired through different processes. Experience at fulfilling demand is characterized by a logical, deductive approach. This method relies on repetition and incremental improvements, which are both explicit and implicit. The graphical representation shows a downward trend in marginal cost as cumulative volume increases, indicating efficiency gains as experience is accumulated within a product generation.

Conversely, experience at shaping demand is described as an inductive process. This approach involves hypothesizing consumer behaviors and testing these hypotheses through new offerings. The empirical measurement of results informs future product launches, allowing companies to adapt and innovate. The graph illustrates this experience as a separate curve, which can potentially lead to significant advancements across product generations.

The slide highlights that the interplay between these 2 types of experience is crucial, especially in a rapidly evolving market driven by technological advancements. Companies must navigate the transition between these curves to maintain relevance and competitive positioning. The insights presented suggest that organizations should focus on both fulfilling current demand efficiently while also investing in shaping future demand through innovative practices. This dual approach is vital for not just surviving, but thriving in an increasingly competitive environment. Understanding these dynamics can help executives make informed decisions about resource allocation and strategic planning.

This slide is part of the BCG Experience Curve PowerPoint presentation.

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